It has certainly been a crazy few weeks for homeowners in the United States, with the recent earthquake and the effects of Hurricane Irene still being felt. Although they may not have considered it before, these events may cause owners of Chicago real estate (and certainly real estate owners in other parts of the country) to take a closer look at their insurance policies.
A recent post on the Equifax Personal Finance Blog explains some of the peculiarities of earthquake and flood insurance. In ?Let?s Stop Denying It: We Need to Buy Earthquake and Flood Insurance?Now!? guest blogger Loretta Worters of the Insurance Information Institute talks about being prepared for the unexpected. The article was written after last year?s tsunami in Japan, but it is certainly timely given recent and ongoing events.
Worters? article contains important details and relevant links about these normally obscure policies. However, the average homeowner should know that earthquake and flood insurance policies are typically are set up differently than those for regular homeowners insurance. According to the post, deductibles on earthquake policies are generally a percentage of the structure?s replacement value rather than a set amount. On average, these deductibles can range from 2 to 20 percent.
In the case of flooding, the federal government offers a special insurance program ? the National Flood Insurance Program (NFIP). Even though the government offers this insurance, homeowners can still purchase it through the companies that provide homeowners policies. Under the NFIP, buyers are covered for up to $250,000 for property and $100,000 for contents. If this is not adequate, you may still use private insurance for additional coverage.
With all of the events that have transpired recently, has your view of earthquake or flood insurance changed? Are you considering buying either type? Read Worters? full article on the Equifax Personal Finance Blog and let us know!
Source: http://www.chicagolandrealestateforum.com/2011/08/30/need-earthquake-or-flood-insurance/
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